Can Spray Net develop and license other trademarks or service marks in conjunction with systems other than the Spray Net system?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
scretion as to whether it decides to grant Franchisee the right to open any additional Franchised Businesses, each of which will be governed by a separate form of Franchisor's then-current franchise agreement.
- E. Reservation of Rights. Notwithstanding anything contained in this Agreement, Franchisor and its affiliates hereby reserve the exclusive right to: (i) own and operate franchised businesses at any location(s) outside of the Designated Territory under the Proprietary Marks, or to license others the right to own and operate Spray-Net businesses at any location(s) outside of the Designated Territory under the Proprietary Marks and System; (ii) the right to own and operate businesses under different marks at any location(s) inside
or outside of the Designated Territory, or license to others the right to own and operate such businesses, under different marks at any location(s) inside or outside of the Designated Territory (such businesses will not primarily provide painting products and services); (iii) use the Proprietary Marks and System in connection with services and products, promotional and marketing efforts, or related items, or in alternative channels of distribution, including the sale of any Spray-Net products in wholesale and retail stores, via the Internet, and through mail order catalog, without regard to location;
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net retains specific rights regarding the use of its trademarks and systems. While franchisees are granted the right to operate a Spray Net business utilizing the Proprietary Marks and System, the agreement explicitly reserves certain rights for the franchisor.
Specifically, Spray Net reserves the right to own and operate businesses under different marks at any location, whether inside or outside the franchisee's designated territory. They can also license others to do the same. These businesses operated under different marks will not primarily provide painting products and services. This means Spray Net can develop and license other trademarks or service marks for systems unrelated to the core Spray Net painting business.
This reservation of rights allows Spray Net to diversify its business interests and explore opportunities outside of its established Spray Net system, without infringing on the rights granted to its franchisees. However, franchisees are restricted from using the Proprietary Marks or System for any purpose other than promoting and operating their franchised business within their designated territory.